Feature by Bernie Schneider
Store Layouts
Give Subtle Cues to Customers:
To Stay or to Go
B
ehavior is influenced by environment, and a store’s layout should
reflect that fact. Successful store owners identify patterns in the
seemingly random way that customers move through a store
and then base their layout on those observations. They are willing to
experiment and adjust as needed, when needed. By eliminating obstacles,
smoothing out the flow and taking advantage of high-traffic areas, store
owners can make their customers much more comfortable while shop-
ping in their stores. And since comfort is directly related to length of
stay and number of items purchased, such attention to detail in crafting
the store environment will likely be rewarded with increased sales and
stronger customer loyalty.
Studies conducted by retail researcher Paco Underhill indicate that
80% of people turn right when they walk into a retail establishment.What
Underhill’s research demonstrates, explained Eugene Fram, the J. War-
ren McClure Research Professor of Marketing in Rochester Institute of
Technology’s Philip Saunders College of Business, is that the area imme-
diately to the right of the entrance is extremely valuable. In larger stores,
it is an area of transition, where customers can decompress and ori-
ent themselves to their new surroundings. They want time to adjust and
should not be overwhelmed with signs, greeters or overly energetic sales
people. In smaller stores, where opportunities to impress the customers
are limited and cannot be missed, the space to the right of the entrance
is all the more valuable. Whether it is a sign or a small display, it has to
catch the customer’s interest. Fram said, “Have something that’s intrigu-
ing to the customer…anything that they would readily recognize as being
something they would want.”
E14 April 2007
What Do Customers Want?
In his book “When Customers Talk,” which he co-authored with BIG-
research, speaker and management training consultant T. Scott Gross
identified the critical elements of a retail experience. They are:
• A Fast Finish: Customers want to be able to get out quickly.
“When the buying mood gives way to the leaving mood, there is no
time for selling. Go for a fast finish,” Gross wrote.
• Convenient and Easy: The store has to be easy to navigate; signs
should be easy to read and helpful in directing the customer around
the store; and aisles should be clutter-free.
• Price/Value: A low price is nice, but a price that represents value
is even better.
• Friendly Staff: The staff should put the customer ahead of the
sale. They should not oversell or be pushy.
• Invisible, Knowledgeable Staff: Customers want the staff to be
available to answer questions, but only when they need help. Oth-
erwise, they want the staff to be invisible.
Today’s shoppers are pressed for time and have limited patience. Frus-
trate them with something even as seemingly trivial as clutter in the
aisles and they are gone. The shopping experience has to be made as
smooth as possible, in all aspects, from the time the customer steps in
the door to the time he/she leaves. “Speed and convenience are impor-
tant in almost all segments [of retail],” said Michael Tesler, a partner in
the Massachusetts-based retail consulting firm Retail Concepts, Inc. If
your layout is efficient and smooth, and people are able to easily find and

Successful store owners
identify patterns in the
seemingly random way
that customers move
through a store and
then base their layout
on those observations.
access the product they are looking for, they
will feel comfortable. When they are comfort-
able, they may just linger a little longer and per-
haps add an impulse item to their purchase.
Shopability. Do You Have It?
Designing your store around your customer is
critical. Customers will leave if they are made
to feel uncomfortable by what they encounter
in your store. You have to strive for “shopabil-
ity,” said Tesler, a term he defined as “creating
the right ambiance and atmosphere and letting
the customer comfortably get the product, to
see where things are and to get in and out of
the store easily.”
In order to design your store around your
customer, you have to know your customer.
You have to watch how they act and move in
your store, and you have to be willing to make
changes based on your observations. “Your
store is a living laboratory, and you should be
testing things out every day,” said Tesler. “Re-
tail is about change, and really good retailers
know how to embrace change.” You should
constantly adjust the store environment to the
changing needs of your customers. Move things
around. Switch a product from high shelf to a
lower shelf or from the back of the store to the
front, and take note of the effect these changes
have. Are people suddenly buying more? Is the
product collecting dust? Have people begun to
ask where they can find that product? All of
this probing can give you input as to how your
store should look.
The Fundamentals of Store Design
While store design will vary greatly from store
to store based on size, geography, market and
demographics, some fundamentals can be ap-
plied to the process. According to Joe Bona,
a veteran store designer who directs the re-
tail environmental design and merchandising/
operations consulting division of Coleman-
brandworx (CBX), a New York-based strate-
gic branding, design and consultancy agency,
Types of store layout
Loop: A major customer aisle begins at the
entrance, loops through the store (usually in the
shape of a circle, square or rectangle) and then
returns the customer to the front of the store. This
layout exposes customers to the greatest amount
of merchandise, but doesn’t promote back tracking
for second thought purchases.
Grid: Counters and fixtures are placed in long
rows or “runs,” usually at right angles throughout
the store. This layout allows for customers to be-
come quickly familiar with where items are located,
but limits creativity, stimulating rushed shopping
behavior.
Free-flow: Fixtures and merchandise are
grouped into free-flowing patters on the sales
floor. This layout allows for browsing and increased
impulse purchases, but can cause confusion as to
the location of a specific product.
Spine: A single main aisle runs from the front
to the back of the store, transporting customers
in both directions, and where on either side of
the spine, merchandise departments using either
a free-flow or grid pattern branch off towards the
back aisle walls. This layout allows for the greatest
flexibility in displaying varying types of merchandise.
Feature
“Certain fundamentals apply to all retail stores.
One of these is that virtually no one comes in
to browse. Everyone who comes in the front
door has a certain transaction in mind.” Bona
outlined a few principles that can be applied
throughout the planning process:
• Expose all customers to a strong first im-
pression – don’t create barriers
• Establish “Key Impulse Zones” – depart-
mentalize what you have to offer
• Place higher margin categories in direct
line of sight – plan category or depart-
mental adjacencies with the objective of
driving traffic throughout the store
• Present the full range of products and ser-
vices to all customers – make the store
easy to shop.
Because so much of store design comes from
observing your customers and their movement
throughout the store, it doesn’t necessarily re-
quire a big remodeling budget to make effec-
tive changes. “Good design,” Bona said, “is the
result of a rigorous problem-solving process. It
is not based on the arbitrary application of per-
sonal taste.” Design should not trump function.
It is critical that you do not stray from the un-
derlying objective of creating an environment
that has a sole purpose of selling merchandise
and services. A ‘strikingly beautiful’ store is not
enough. Some basic guidelines when thinking
about your store design are:
• Know your customers
• Define your customers’ needs
• Identify how best to fulfill your custom-
ers’ needs
• Exceed customer expectations
So, Watch and Learn
The retail environment should never be static,
but it should always be reactive to customers’
needs. Preferences are always changing. Ten to
15 years ago, customers accepted what re-
tailers called a “zig-zag flow,” in which stores
purposely place items in their customers’ path
in the belief that these obstructions would
increase impulse purchases. Today, customers
just want to shop quickly. Remember that your
customers know why they are in the store and
they resent disorganization or clutter. They
want straight aisles, well-organized shelves,
helpful—but unassuming—staff and a quick
checkout. It is the successful retailers who can
adapt their stores to the evolving needs of their
customers, thereby maintaining a comfortable
environment for a loyal clientele. BS
OTC Beauty Magazine E15